Spain out in front in BYD’s European factory sweepstakes

Mace | 14th October 2025 | Brussels, International

Spain has emerged as the leading contender for BYD’s third European vehicle plant. The country’s competitive manufacturing costs, renewable-energy grid, and EV incentives are major advantages. A final decision, still pending approval from Chinese regulators, is expected before year’s end.

Spain is being tipped as the prime candidate for BYD’s third European car plant as the Chinese automaker seeks to localise more of its supply chain and avoid tariffs. The firm already has factories planned in Hungary and Turkey, and this new site would further anchor BYD’s continental footprint. Sources close to BYD point to relatively low manufacturing costs in Spain as a key draw, together with a power network increasingly reliant on clean energy. Spain’s ambition to become a major EV manufacturing hub has led it to roll out policy incentives and infrastructure upgrades to back battery and vehicle projects. Spanish authorities have not confirmed a deal, reflecting the sensitive nature of the negotiations. Any final decision remains contingent on Chinese regulatory approval, with a deadline likely before the end of the year. BYD’s European sales are already surging, up about 280 percent in the first eight months of 2025, a rise that has intensified pressure to produce locally in order...

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